Hawaii runs twelve tax brackets — more than any other state — from 1.4% up to 11%, the second-highest top rate in the country after California.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
|---|
The rates run 1.4%, 3.2%, 5.5%, 6.4%, 6.8%, 7.2%, 7.6%, 7.9%, 8.25%, 9%, 10% and 11%. Seven of those twelve bands are exhausted by $48,000 of taxable income for a single filer, so the graduated structure does most of its work at very low incomes and behaves close to flat above the middle.
A single filer earning $90,000 sits in the 7.6% band; one earning $200,000 sits at 8.25%. The 11% top rate requires $325,000 of taxable income.
Hawaii is in the middle of a multi-year reform that widens these brackets substantially and raises the standard deduction through 2031 — the largest income tax cut in the state's history. The figures here reflect the current year; the trajectory is toward a lighter burden, particularly at lower incomes.
Hawaii does not levy a conventional sales tax. It levies a general excise tax on business gross income, which is passed to customers and functions like a sales tax with a far broader reach.
The rate looks low at around 4% plus county surcharges. The catch is scope: GET applies to services, professional fees, rent, medical services and commissions, and it pyramids — applying again at each stage of a transaction chain. Economists generally estimate the effective burden at well above the nominal rate because of that layering.
For a household, this means Hawaii's consumption tax reaches far more of your spending than a mainland sales tax would. For anyone self-employed, GET is a separate filing obligation on your gross receipts.
The standard deduction is $4,400 for a single filer and $8,800 for a couple, with a $1,144 personal exemption — among the smallest allowances in the country, though both are rising under the current reform.
Combined with the highest cost of living of any state, the practical effect is severe. A salary that supports a comfortable life on the mainland does not stretch the same way in Honolulu, and the state income tax takes its share before housing costs are considered. Any comparison of a Hawaii offer against a mainland one needs to run on purchasing power, not gross salary.
No Hawaii county levies an income tax, though counties do add surcharges to the general excise tax.
Twelve, more than any other state, running from 1.4% to 11%. Seven of them are used up by $48,000 of taxable income.
A tax on business gross income, passed to customers. Unlike a sales tax it applies to services, rent and professional fees, and it pyramids across stages of a transaction, so the effective burden exceeds the nominal rate.
Yes. A multi-year reform is widening the brackets and raising the standard deduction in stages through 2031, the largest income tax reduction in the state's history.
No. Counties add surcharges to the general excise tax instead.